Graceland Lawsuit Claims Dropped Hours After Judge Sides with Riley Keough, Throws Out Foreclosure Sale

The lending company that Riley Keough filed a lawsuit against on Monday has said they've dropped all claims on Graceland hours after a judge halted the estate's foreclosure sale

• A lending company that attempted to sell Elvis Presley's Graceland estate in a foreclosure auction on May 23 said they've dropped all claims on the property

• The move comes after a Tennessee judge halted a sale of the beloved Memphis property and following a May 20 lawsuit filed by Riley Keough against the lending company

• In her suit, the actress called the now-paused foreclosure sale of Graceland “fraudulent"

The company Riley Keough has accused of trying to defraud her family into selling Graceland may have dropped all claims on the property.

Just hours after a Tennessee judge blocked Naussany Investments and Private Lending from unloading the legendary property in a foreclosure sale, an attorney for Keough "received an email from Gregory Naussany confirming they do not intend to move forward with their claim," a rep for Graceland said in a statement to PEOPLE.

Naussany reportedly said the company would not proceed, as a key document in the case and the loan apparently taken out by the late Lisa Marie Presley were recorded and obtained in a different state, meaning legal action would have to filed in more than one state, according to the Associated Press. It remains unclear the name of the other state.

"There was no harm meant on Ms. Keough," someone named Gregory Naussany said in an email to the Memphis Commercial Appeal.

The AP reported that Naussany had a motion denying the accusations in Keough’s lawsuit and opposing the Graceland estate’s request for an injunction denied by a judge.

The Appeal, meanwhile, reported that the Shelby County Chancery Clerk's office confirmed it has not heard from Naussany Investments since the end of a hearing on Wednesday.

Naussany Investments did not immediately respond to PEOPLE’s request for comment.

Related: Graceland Rep Speaks Out After Judge Halts Sale Following Foreclosure Attempt: 'No Validity'

The move comes hours after a Tennessee judge blocked a May 23 foreclosure sale of Elvis Presley's beloved estate during a hearing at the Shelby County Chancery Court in Memphis, Tennessee, on Wednesday, May 22 — which followed an alleged “fraudulent” attempt to sell the property, as Keough, 34, claimed in a May 20 lawsuit.

“The estate is considered unique under Tennessee law, and in being unique, the loss of the real estate will be considered irreparable harm,” Judge Chancellor JoeDae L. Jenkins said during the hearing. Neither Keough nor a representative for Naussany were present.

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In a lawsuit obtained by PEOPLE, Keough accused Naussany of posing as a “false entity created for the purpose of defrauding the Promenade Trust (the trust of Keough and formerly of Lisa Marie), the heirs of Lisa Marie Presley or any purchaser of Graceland at a non-judicial sale.”

Naussany claims that Lisa Marie borrowed $3.8 million and gave them a deed of trust encumbering Graceland as security before she died in January 2023 — but Keough’s lawsuit claims Lisa Marie’s apparent signatures on the Standard Promissory Note and deed of trust are forged.

The suit also claims that the notary who allegedly witnessed Lisa Marie signing the deed and the note said she did not in fact notarize anything, and that she has never met Lisa Marie.

In the May 22 hearing, Jenkins said that this claim brings the authenticity of both the signature and of the deed of trust into question.

Related: Elvis' Granddaughter Riley Keough Calls Graceland Foreclosure Sale Attempt 'Fraudulent' in Court Docs

Ultimately, Keough sought to block Naussany from selling Graceland by requesting a temporary restraining order against the company “or any party acting in concert” with them “from conducting any non-judicial sale of the property.”

"As the court has now made clear, there was no validity to the claims. There will be no foreclosure," Graceland and Elvis Presley Enterprises said in a statement shared with PEOPLE after the hearing. “Graceland will continue to operate as it has for the past 42 years, ensuring that Elvis fans from around the world can continue to have a best in class experience when visiting his iconic home.”

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